(2) Rate of tax deduction: Tax needs to be deducted at source @1% on purchase value of immovable property if the same exceeds Rs.50 lakhs per property. If seller doesn't have PAN no., tax needs to be deducted @ 20% instead of 1%

(3) Time of Tax deduction: Tax needs to be deducted at the time of payment to seller or at the time of booking in books of purchaser, whichever is earlier

(4) Due date of deposit of tax deducted: Tax deducted as above needs to be deposited within 7 days of next month. TDS should be deposited only through online payment. New challan cum statement form framed for payment i.e. 26QB.

(5) Type of property covered: Both residential and commercial property covered under the provision.

(6) Whether TAN required for purchaser: No need to register for TAN no. with department. You can use your PAN no. to deposit tax deducted from payment made to seller

(7) Issue of TDS certificate: Every purchaser of property who has deducted TDS under the said provision need to issue TDS certificate in form 16B within 15 days from due date of deposit i.e. by 22nd of next month in which tax has been deducted. Right now no mechanism in place of issue of system generated TDS certificate as we have in case of form 16A and form 16, so you need to issue TDS certificate manually

(8) In case of property finance through loan: A standing instruction shall be furnished to bank to remit amount directly to seller after deducting TDS @1% of the total payment made and asked to deposit the same with government by them directly.

(9) In case of purchase of property from seller with consideration to pay in installments, then TDS shall be deducted @1% on all the installments which are due on or after 01.06.2013

(10) No need to file TDS return separately on quarterly basis- TDS challan cum statement i.e. 26QB shall need to use for remitting TDS amount to government which covers all the details as required to be furnished under TDS return.

(11) Exemption limit: No TDS required to be deducted where consideration is less than Rs.50 lakhs. The limit of Rs. 50 lakhs is per property and not aggregate value of consideration of all properties during the year.

There are various clarifications still remained unresolved. Hope government will come out of circular for effective implementation of the said section.